Power plant transition committee to be formed

SOMERSET — A group of environmentalists calling themselves Coalition for Clean Air Southcoast have organized a meeting that they want the public to come to on Thursday, April 25, to form a transition committee that would discuss how Somerset would make up for millions of tax dollars lost if the Brayton Point power plant shuts down.

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By GEORGE AUSTIN

southcoasttoday.com

By GEORGE AUSTIN

Posted Apr. 24, 2013 at 1:36 PM

By GEORGE AUSTIN

Posted Apr. 24, 2013 at 1:36 PM

» Social News

SOMERSET — A group of environmentalists calling themselves Coalition for Clean Air Southcoast have organized a meeting that they want the public to come to on Thursday, April 25, to form a transition committee that would discuss how Somerset would make up for millions of tax dollars lost if the Brayton Point power plant shuts down.

"At the meeting, we're going to invite people who want to be involved on this committee, so we can plan for the town and for the future," Ms. Rodrigues, a member of the Coalition for Clean Air, said.

The meeting will be held, starting at 6:30 p.m. on April 25, in the Amvets Hall, located at 659 Brayton Ave. in Somerset.

At the meeting, there will be a discussion about what residents can do to maintain Somerset's tax base, protect the health of the town and assure adequate financial protection for power plant workers. According to the organizers of the meeting, Brayton Point's earnings dropped from $345 million in 2009 to $24 million in 2012, a decrease of about 93 percent.

The owner of the power plant, Dominion Energy, recently announced plans to sell the power plant, and there are signs earnings will not increase anytime soon, according to the organizers of the meeting.

The value of the power plant has dropped from $660 million to $397 million which hsa caused an almost $8 million drop in the amount of revenue that Dominion Energy has paid the town. That was one of the major factors for a significant increase in taxes for both residents and businesses this past year.l

Ms. Rodrigues said it would be an ad hoc committee, so it will not have an affiliation with the town. She said the committee could discuss businesses that could be brought into the town or money that could be available from the state to help the town get through a period of time if it loses significant revenue from the power plant. Ms. Rodrigues said the committee would work with the state government and different organizations that have information available to them.

Ms. Rodrigues said citizens do not have to have a particular expertise to be on the committee.

"We're looking for anyone who is interested in becoming involved," Ms. Rodrigues said. "It's open to anyone."

Some of those who will be in attendance at the meeting include Shanna Cleveland, staff attorney for the Conservation Law Foundation, Al Lima, of the Coalition for Clean Air, and Connie Brodeur from the Coalition for Clean Air.

Ms. Rodrigues said the group has met with Energy and Environmental Affairs Secretary Richard Sullivan because they are concerned that the power plant could shut down in the near future and the town is not planning for it. The administration of Gov. Deval Patrick has convened a statewide Coal Power Plant Revitalization Task Force and has committed to helping Somerset, Holyoke, and Salem plan for coal retirement, decommissioning and reuse.

"The state thinks the power plant is going to shut down," Ms. Rodrigues said.

Ms. Rodrigues said she thinks the state thinks the power plant, which is the town's largest taxpayer by far and largest employer, could cease operating by 2017.

"Which is not tomorrow, but unless we plan for it, nothing is going to happen," Ms. Rodrigues said.

In March, Dominion Energy announced that it was selling Brayton Point power plant and two of its other power plants to Capital Partners, a private equity firm that has offices in New Jersey and California. But how much the Somerset power plant was being sold for was not disclosed and may never be, according to a spokesperson for Dominion Energy.

The chief executive officer of Capital Partners said last month, that the company would give coal generation a chance at the power plant, but if it is not profitable enough, could evaluate the site to see if it could be converted to a gas fueled power plant.

The sale of the power plants still needs approval from the Federal Energy Regulatory Commission and anti-trust clearance.

Ms. Rodrigues said an example of why the transition committee needs to be formed is the closing of the Montaup power plant on Riverside Avenue. She said the town was not prepared to make up for the closing of that business.

Since that time, the town has formed a reuse committee for the property and one developer showed interest in the former power plant site as an oceanographic research center on Riverside Avenue, but could not come to an agreement with the owner on purchasing the property.

Ms. Rodrigues said if the town does not plan for the possible closure of the Brayton Point power plant, taxes will go way up.

The town has been using some of the money in its stabilization account during the past couple of years to offset revenue lost from the power plant.

Dominion Energy has appealed the town's valuation of the power plant property two time and the matter is currently in court while the town holds millions of dollars in escrow money, pending the decision on the case.

The owner of the power plant has put hundreds of millions of dollars into environmental improvements at the power plant to help reduce pollutants going into the air and to not discharge as much heat into Mount Hope Bay in recent years. But the town is not allowed to tax property that is used for environmental improvements to the power plant.